Prospective buyers of Italian real estate have a powerful tool to understand the quality of the property they are evaluating. All Italian properties being marketed for sale must be advertised with an Energy Efficiency Rating, which provides a reliable estimate of the structure’s overall insulation and cost to control interior temperature.
Many clients approach us after they realize that the homes they are interested in have the lowest of ratings: the dreaded “G”. Is there reason to worry or even walk away from the purchase? What does the G-rating truly mean?
WHAT DOES THE ITALIAN G ENERGY EFFICIENCY RATING MEAN?
“G” is the lowest possible rating within the APE rating system for energy efficiency. A “G” rating is reserved for those homes that require the highest energy consumption to regulate interior temperature. What this means in practice is that G-rated homes will require an annual energy consumption greater than 160 kWh per sqm on heating and cooling, or over five times the energy consumption expected in an A-rated building (less than 30 kWh per sqm).
As an example, a G-rated apartment of 100 sqm (1,075 sqft), at the average 2023 energy cost of €0.20 per KWh may cost up to € 3,200 per year in heating and cooling alone.
IS THE ITALIAN G ENERGY EFFICIENCY RATING A SERIOUS PROBLEM?
By their nature, larger and older homes will be rated lower. In Italy, where the majority of homes was built several decades ago, that translates in low energy efficiency ratings across the board. According to a recent study by Casa.it, as much as 55% of properties currently listed for sale were rated “G”. On the other hand, little more than 12% of inventory was rated the most efficient “A”.
It is therefore very common to stumble upon low energy efficiency ratings, and the listing price will often reflect the efficiency and condition of the advertised property. A “G” rating should not cause alarm in prospective buyers, but rather prompt them to consider the trade-off between maintaining the status quo or making targeted improvements to increase energy efficiency.
HOW CAN A LOW ENERGY EFFICIENCY RATING BE ADDRESSED?
Improving your home’s energy efficiency does not have to be a daunting prospect. While achieving an “A” rating in a 100-year-old home may not be possible, simply moving away from the lower ratings may be easier than you think.
Lighter improvements that can positively impact your energy efficiency rating include replacing your water heater, upgrading your radiators or installing double-pane windows.
More substantial upgrades that will reduce long-term energy consumption include installing a low-consumption AC system or heat pump, radiant floor heating, upgrading the wall insulation and installing solar panels on your roof.
There’s some good news for those preparing to invest in energy efficiency improvements: the Italian government offers various subsidies and tax abatements to incentivize property owners to improve their energy efficiency ratings.
